1 suppose we are planning a 100 mw wind farm with a 1 year p 50 capaci
1. Suppose we are planning a 100 MW wind farm with a 1-year p-50 capacity factor of 44%
and a 1-year p-99 capacity factor of 36%. The total cost to build the plant is $1,400/kW, and
all power will be sold on a long-term power purchase agreement for $35/MWh. The plant has
fixed operating costs of $40/kW-yr. A lender is willing to offer a 25-year loan at an interest
rate of 4.5%.
(a) What is the wind farm's Cash Flow Available for Debt Service (CFADS) if the lender
sizes the debt based on a debt service coverage ratio of 1.30x at the p-50 level?
(b) What would the CFADS be if the lender instead used a DSCR of 1.00x at the p-99
(c) Suppose the lender uses the smaller of the annual payments implied by parts (a) and
(b). What is the total debt capacity (i.e., maximum loan size) for the project?
(d) Assuming the project developers use the maximum amount of debt on offer, what
percent of the project will be funded by the equity investors?
*The amount will be in form of wallet points that you can redeem to pay upto 10% of the price for any assignment. **Use of solution provided by us for unfair practice like cheating will result in action from our end which may include permanent termination of the defaulter’s account.Disclaimer:The website contains certain images which are not owned by the company/ website. Such images are used for indicative purposes only and is a third-party content. All credits go to its rightful owner including its copyright owner. It is also clarified that the use of any photograph on the website including the use of any photograph of any educational institute/ university is not intended to suggest any association, relationship, or sponsorship whatsoever between the company and the said educational institute/ university. Any such use is for representative purposes only and all intellectual property rights belong to the respective owners.